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Providing coverage of Alaska and Northwest Canada's mineral industry
December 2006

Vol. 11, No. 52 Week of December 24, 2006

MINING NEWS: Mining and the Law: Northwestern miners gather at Reno convention

J.P. Tangen

Guest Columnist

During the first full week in December approximately 1,800 miners and members of support industries met in Reno for the Northwest Mining Association’s annual convention. The convention was characterized by a large number of smiles as the industry emerges from a decades-long period of depressed metals prices.

The convention featured presentations concerning the status of projects as well as developments in the industry ranging from mine cleanup to safety and health issues. Among the most exciting projects discussed were projects in Nevada, British Columbia and Alaska. Featured Alaska properties included the Usibelli coal mine, the Kensington gold mine and the Pebble copper-gold-molybdenum project.

A notable disclosure relating to Pebble, and a sad sign of the times, was that although Northern Dynasty has expended roughly $54 million so far, only about half of that has gone into the ground. The balance has been dedicated to environmental studies and fending off those who would foreclose this property from being explored and permitted.

Lack of qualified engineers

Another presentation at the convention detailed the problem the industry is having finding qualified engineers to operate the many properties that are being positioned for production around the West. Although there is a steady demand for new talent, the number of graduates in mineral engineering has dropped off significantly in recent years. Many schools of mines across the United States have closed their doors, while others have merged or modified their programs. Only 15 schools remain where one can get a degree in mining engineering, and they are having a hard time attracting candidates. Fortunately, one of the remaining schools is at the University of Alaska Fairbanks. At UAF qualified applicants can look forward to extensive scholarships and attractive job offers upon graduation.

Mining Law revisions likely to be proposed

The high spirits endemic at Reno did not appear to be dampened by the political implications of the last election. While the industry continues to be drawn into the quagmire of incessant litigation, the end of the respite afforded by a friendly administration and Congress drew less attention. Commentators, of course, observed that the probable succession of Rep. Nick Rahall, D-W.Va., as chairman of the House Resources Committee undoubtedly means that revision of the Mining Law of 1872 will be proposed; however, that was thought to be diluted, to some degree, by the fact that Sen. Harry Reid of Nevada will be Senate Majority Leader.

Nevada’s status as a major mining state is likely to ensure that modifications in the law are likely to be somewhat muted. On the other hand, smaller mining operations on federal land, characteristic of Alaska, are not as likely to be protected as are larger operations such as those common in Nevada.

The Northwest Mining Association is headquartered in Spokane and traditionally has held its conventions there. The Reno adventure, however, was by most accounts a successful experiment. Although fewer attendees from Washington were in evidence, this was more than offset by the many more Nevadans who attended, as well as registrants and exhibitors from the nearby states of California, Utah, Arizona and New Mexico.






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